economic Factors
As 2025 begins, the global economy remains stable, supported by steady 2024 growth and easing interest rates. However, the outlook depends on U.S. tariff policies, which could lead to higher inflation, slower U.S. growth, and weaker global trade, especially in countries that rely on exports.
Flight activity
In Q1 2025, global flight activity rose 2.4% year-over-year, led by strong demand in North America, especially the U.S., where travel momentum from late 2024 continued. Despite geopolitical tensions slowing growth elsewhere, international activity still outpaced Q1 2024 levels. Fractional operators remained the top-performing segment.
Aircraft Manufacturers backlog
In Q1, OEM backlogs grew 3.1% year-over-year to $47.9 billion, though gains varied across manufacturers. Efforts to ease supply chain and labor issues led to below 1. Despite these challenges, OEMs remain optimistic about sustaining strong delivery levels and order intake through 2025.
TRANSACTION volume
After stabilizing in 2024, transactions rose in Q1 2025, with unit volume up 25.9% and dollar volume up 21.8% year-over-year. While supply chain and labor challenges have limited new aircraft deliveries in recent years, OEM efforts led to an 11.6% increase in new delivery value. Continued progress is expected to support the industry amid economic uncertainty, with most OEMs still planning production increases for 2025.
pre-owned INVENTORY
In Q1 2025, aircraft listings fell 5.8% year-over-year, making the second straight quarterly decline after an 8.9% drop in Q4 2024. While listings remain above pre-COVID levels, much of the growth has been driven by older aircraft. Listings of aircraft aged 13 years or more rose to 69.2% of the total, up from 60.3% in Q1 2019, while listings of newer aircraft (12 years or younger) fell 28.3% over the same period. This shift follows a period from 2022 to mid-2024 when public listings returned to historical norms.
Aircraft bluebook values remained stable over the past six quarters, following sharp increases from 2021 to 2023 driven by high demand and limited availability. As inventory levels normalized in 2023 and 2024, values leveled off. In Q1 2025, like-aged aircraft values declined 1.2% year-over-year and 2.2% quarter-over-quarter, reflecting a return to typical depreciation patterns. Older aircraft (13+ years) saw a 3.6% drop in value, while newer models (12 years or younger) held steady with only a 0.2% decline. Despite economic uncertainty, the market remains balanced, supporting expectations for continued value stability.
aircraft VALUES